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Tesla CEO reassures on jobs in Germany after threat of strike

Xinhua, April 19, 2017 Adjust font size:

In a letter to the employees on Wednesday, Tesla owner Elon Musk guaranteed all existing jobs of German technological supplier Grohmann Engineering located in Pruem, Rhineland-Palatinate, for at least five years.

He criticized German Industrial Union IG Metall for not sharing Tesla's "mission" of a transition towards sustainable energy.

This follows a dispute between the IG Metall and Tesla about the wage levels that are 25 to 30 percent lower than the union rate, according to Work Council chairman Uwe Herzig. IG Metall demands negotiations of a collective labor agreement and job security.

Tesla's offer of a monthly wage raise of 150 euros (160.5 U.S. dollars) was seemed not sufficient. "We have not received a satisfactory reply from the company (Tesla)," a Union spokesperson said, adding "we will evaluate whether work strikes are possible."

A Tesla representative stated that the company is "prepared in the event, there is an action initiated by the union."

Musk announced negotiations with the work council "to ensure that the wage of each individual employee is competitive in the market." In the letter, Musk also states that each employee will receive a bonus of 1,000 euros and Tesla shares worth 10,000 dollars to be distributed quarterly over the next four years.

He promised the opportunity for the employees of Tesla Grohmann Automation to "earn significantly more than common in the industry."

Grohmann Engineering, renamed Tesla Grohmann Automation after the takeover in January 2017, plays a vital part for the future of the electric car manufacturer, supplying automated production modules.

The automated machines are used for the production of Tesla car models, among others, the Tesla Model 3 that is scheduled to enter the market in summer 2017.

Grohmann will end the collaboration with all other companies, such as Daimler, and will exclusively supply Tesla. The resulting economic dependence on Tesla had raised the issue of long-term job security. Enditem